Avis tops Hertz’s offer to buy Dollar Thrifty Automotive rental group

In April of this year, Hertz agreed to buy Dollar Thrifty Automotive Group Inc. for about $1.2 billion in cash and stock. Than Avis came around and said that they’ll beat Hertz’s offer – well, 2 months later into the whole process, Avis has indeed topped Hertz’s bid to buy Dollar Thrifty.

In a letter to Dollar Thrifty executives, Avis Budge Group Inc. said that it will pay $1.33 billion for Dollar Thrifty Automotive Group. Nonetheless, Avis’ $46.50-a-share bid fell about $2 short of Dollar Thrifty’s closing stock price on Wednesday.

“We are prepared to enter into a merger agreement that contains substantially the same terms as the Hertz merger agreement, but which includes removing the matching rights, eliminating the break-up fees, and increasing the commitment to secure antitrust approvals,” Avis said in a letter.

Avis said its bid provides a premium of about 17 percent to the value of the Hertz offer. Hertz’s offer is worth $39.86 a share.

– By: Omar Rana

Source: Reuters